logo-loader
viewIG Group

Numis analysts reckon IG is worth a punt after recent share price fall

IG beat Numis forecasts with last week’s first-quarter results, but the stock has slipped 10% in the days since, taking it down into ‘good value’ territory

share chart
Numis analysts moved their recommendation from ‘add’ to a more bullish ‘buy’

City broker Numis thinks online trading firm IG Group PLC (LON:IGG) is worth a punt now, following last week’s first-quarter update.

Revenue fell to £128.9mln in the three months to August 31 from a record of £135.2mln a year ago, even as the number of clients rose by 3% to 129,000.

READ: IG revenues slide in Q1

The heightened level of volatility in financial markets which fuelled spreadbetters’ profits last year had not continued, while a regulatory crack-down designed to protect retail customers from losing too much money had also impacted trading.

Those results were still good enough to beat Numis’ forecasts but the stock has fallen more than 10% since, making it good value, according to the broker.

“Following the better than forecast Q1 performance where IG reported revenues of £128.9m against our estimate of £121.0m in a quiet quarter with some of the ESMA impact we are today upgrading,” read a note to clients.

“For this year and next our revenue forecast increases by 2% to £534.4m and £579.3m respectively. Given the recent weakness our recommendation moves to ‘buy’ from ‘add’.”

Shares fell another 2.1% to 761p on Tuesday following a profit warning from rival CMC Markets PLC (LON:CMCX).

Quick facts: IG Group

Price: 673.6 GBX

LSE:IGG
Market: LSE
Market Cap: £2.49 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: TRACON Pharmaceuticals reveals its low-cost drug development...

TRACON Pharmaceuticals (NASDAQ:TCON) CEO Charles Theuer tells Proactive the biotechnology company ended 2019 with cash, cash equivalents and short-term investments of $16.4 million. Theuer explains despite engaging in five different clinical trials, three of the five company's clinical trials...

12 hours, 30 minutes ago

2 min read